A blockchain firm advised by Nobel laureate Myron Scholes just launched a rival to Facebook's libra
With an advisory board that includes top economists like Nobel Prize-winner Myron Scholes, U.K.-based firm Saga hopes to introduce a global currency that regulators find agreeable.
The company on Tuesday launched its saga token, a virtual currency tied to a basket of currencies in order to maintain a stable value.
That's not too dissimilar to Facebook's libra, which was met with a barrage of regulatory opposition moments after being announced.
It's only acting as an issuer of the token, rather than building its own digital wallet for users to store and exchange it like Facebook is doing with Calibra.
The SGA tokens will initially be available to purchase on Saga's website and is being listed on the cryptocurrency exchange Liquid.
Like libra, SGA features the characteristics of a so-called stablecoin, which seeks to avoid the volatility of cryptocurrencies like bitcoin. Saga says it can stabilize the value of SGA with smart contracts self-executing contracts on the blockchain that are used to adjust the money supply in order to meet demand.
He gave the example of British consumers wanting to use it to pay for things on Amazon if the pound fluctuates in reaction to Brexit-related news.
Though it is a non-profit organization, the venture is backed by investors including Lightspeed Venture Partners and Mangrove Capital Partners.
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